The Senegal international is a free agent after leaving United at the end of last season.
Talks are underway between Sabah and the 33-year-old, with the Malaysian Premier League side hoping to tie up a deal for the player as early as next week, says the Daily Mail.
Diouf has spent more than a decade playing in the UK during spells at Liverpool, Bolton, Sunderland, Blackburn, Rangers, Doncaster and Leeds.